Copper Price Weekly Forecast: Paused Downtrend Momentum
Copper Technical Outlook
- Copper bears show more sway
- Key chart points and signals
Copper Price – Weaker Bearish Move
On Jan 3, Copper tumbled to $5.527- its lowest level in five months. The market rallied after as some shorts seemed to cover.
Alongside that, the Relative Strength index (RSI) rose from oversold territory then remained flat below 50 highlighting paused bearish momentum.
Copper DAILY PRICE CHART (AUg 30, 2018 – FEb 11, 2020) Zoomed out
Copper DAILY PRICE CHART (OCt 12 – FEb 11, 2020) Zoomed In
Looking at the daily chart, we notice on Jan 24 bears took charge and pressed Copper multi- months low. The price rebounded after, then rallied towards the high end of current trading zone $5.519- $5.735.
On Thursday, the metal closed the daily candlestick with a bearish Doji pattern reflecting that bears were not done yet. Today, the price opened with a gap to the upside. A close above the high end of the zone highlights bears hesitation and could lead some of them to ease up further. This might cause a rally towards $6.012. That said, the weekly resistance levels underlined on the chart (zoomed in) should be considered.
In turn, any failure in closing above the high end of the zone may encourage bears to lead Copper towards the low end. Further close below this level could mean more bearishness towards $5.239. In that scenario, the weekly support levels marked on the chart should be monitored as some traders might join/exit the market around these points.
CoPper Four-HOUR PRICE CHART (Dec 1 – FEb 11, 2020)
From the four-hour chart, we noticed that on Feb 6 Copper corrected its downtrend move as carved out a higher high at $5.813. Since then, the price started a sideways move creating lower highs with higher lows.
A break above $5.855 could cause a rally towards $5.968. Although, the weekly resistance level underscored on the chart should be kept in focus. On the other hand, a break below $5.462 may send the market towards $5.239. Nevertheless, the weekly support level printed on the chart should be watched closely.
See the chart to know more about the key technical levels in a further bullish/bearish move.
Written By: Mahmoud Alkudsi
Please feel free to contact me on Twitter: @Malkudsi
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.